Apple has sold more than 100 million iPod Touch units, the company said Thursday, and it hopes to sell more by offering a new, less-expensive $229 model.

The Cupertino tech giant began selling the iPod Touch alongside the iPhone back in 2007, and on Thursday, it told The Loop, an Apple blog, that since then, it has sold more than 100 million units. That's up from 82 million last July.

Sales have been steady despite predictions that smartphones would kill the iPod market. But Apple has been able to push the device to younger users, touting its gaming and entertainment features.

Apple is hoping to continue to grow the market by offering users a less expensive $229 model that went on sale through its online store this week. It will also be available at its retail stores starting Friday.

The device, which looks and functions like the iPhone without cellular calling capability, comes with 16-gigabytes of storage and offers a lower-cost option than the 32 GB and 64 GB versions of the device, which sell for $299 and $399, respectively.

The new 16 GB option is very similar to the fifth generation iPod Touch devices that Apple began selling late last year. It comes with a 4-inch Retina display, a dual-core A5 chip and a front-facing camera.

However, unlike the 32 GB and 64 GB iPod Touch devices -- which come in a variety of color options -- the $229 model is available only in black and silver.

The 16 GB model also lacks a lanyard hook found on other models, and more importantly, it does not have a rear-facing camera.